ISME rejects mandatory pensions
16 June 2008

Written by Sophie Baker

In a submission on the Green Paper on pensions, the Irish Small and Medium Enterprises Association (ISME) affirmed its outright opposition to the introduction of mandatory pensions, outlining that individual responsibility for retirement income was the only acceptable way forward.

Conducted in association with consultant Jardine Lloyd Thompson, the submission assessed the proposed areas outlined in the Green Paper, including maintaining the status quo, more State provision with higher taxes, mandatory private pensions along the lines of the different schemes introduced in Australia and New Zealand, or building on the existing voluntary system of private pensions.

According to ISME, an in-depth analysis of the Green Paper confirmed that retaining the voluntary system is the most practical and sustainable approach for the future.

SME owner managers have stated that the introduction of employer mandatory pensions would be the last straw and leave them with no option but to let people go, said the ISME statement.

Commenting on the submission, ISME chief executive, Mark Fielding, said: “If the Government is serious in its concern for the working citizen who will not save for retirement on their own initiative then, rather than placing the onus on employers; pressure must be put on the working citizen themselves, as is the case in other areas, deemed to be for the common good, for example, the smoking ban. Legislation to force retirement savings on the employee is the most equitable option.”